TNS Distribution sold for €21m

Irish-based TNS Distribution has been bought by global supply chain solutions company PCH International in a deal worth up to €21 million.

PCH will pay €6 million immediately for the consumer electronics distributor, with a further €5 million paid over three years depending on earnings and performance of TNS. A further payment, based on the performance of PCH, could add between €5 million and €10 million to the total.

TNS Distribution's business is mainly based in Europe, with offices in the UK, Germany, France, Sweden, Spain and China. It employs about 40 people.

The company has built up a strong distribution network throughout the continent, and it is expected that the acquisition will enhance PCH's distribution capabilities in Europe.

"Ireland is the perfect location for distribution into Europe and to manage the flows of information globally," said PCH chief executive Liam Casey. He praised TNS founders John McHugh and Ivan Eustace as "superb entrepreneurs".

"This business is very scalable, and we expect this acquisition will eventually create new jobs in Ireland. We are excited about the opportunities this investment will bring and the benefits to our clients will be enormous," he said.

PCH, which is headquartered in Cork, creates, develops and delivers accessories for eReaders, smartphones and tablets, and has offices on four continents. It employs around 1,200 people worldwide, with the majority located in China. The company last week announced it had raised $30 million (€20.5 million) in its latest round of venture capital funding, saying the money would finance further growth. 

This follows the $26 million it successfully raised in February and $21 million in 2008.